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ABOUT 500 workers at Chambishi Copper Smelter (CCS) have been issued with summary dismissal letters following their two-day riotous behaviour in protest against alleged poor conditions of service. And Police have apprehended seven CCS workers in relation to the riot that took place on Tuesday at the copper smelter company.Both CCS company secretary, Sun Chuanqi, and Copperbelt permanent secretary, Jennifer Musonda, confirmed the figure of the dismissed workers in separate interviews yesterday. Mr Chuanqi revealed that company property worth about US$200,000 was allegedly destroyed by the irate workers during the riot.He said management was saddened that the workers rioted before the conclusion of negotiations with union representatives.

Mr Chuanqi said the workers had been given a grace period of three days within which to exculpate themselves and show cause why disciplinary action should not be taken against them.

He complained that work had been adversely affected by the workers’ riotous behaviour.

Mr Chuanqi warned that all workers identified as ring leaders would be dismissed from employment to discourage others from behaving in a similar manner.

By press time yesterday more than 19 alleged ring leaders had been identified while more than 66 workers collected their summary dismissal letters.

Mr Chuanqi appealed to workers to exculpate themselves within the stipulated time so that the innocent ones could be reinstated.

“We’re appealing to the workers to respond quickly to the summary dismissal letters so that those that did not take part in the riotous behaviour could be reinstated because work has been grossly affected and we need local manpower,” he said.

Mr Chuanqi said CCS belonged to Zambians and wondered why the workers destroyed what belonged to them simply because of a dispute that could have been resolved amicably.

“What we are building here also belongs to Zambians, so people must desist from destroying this investment. For those who will not come to collect their letters, we will follow them until they get them so that they can exculpate themselves,” he said.

However, Mr Chuanqi paid tribute to government for its continued support to Chinese investment in Zambia.

He also said the Chinese worker only identified as a Mr Li who was injured during the riot on Tuesday was discharged from the hospital.

And Mrs Musonda also confirmed that workers were served with summary dismissal letters when they reported for work yesterday.

A check by the Zambia Daily Mail crew yesterday at the CCS premises found several riot police officers manning the company.

Some Zambian workers were found waiting to collect their summary dismissal letters while others were reluctant to collect them, claiming that they did not take part in the riot.

Those spoken to said they were ignorant about the whole thing and that they were just forced by some of their colleagues to riot.

Copperbelt Police commanding officer, Antonneil Mutentwa, revealed that six officials of the National Union of Miners and Allied Workers (NUMAW) and their member were apprehended by police in connection with the riot.

Mr Mutentwa said the union officials and their member were apprehended around 17: 45 hours on Tuesday.
NUMAW national secretary Albert Mando condemned the action by the workers to riot and damage company property.

“We are not in support of what the workers did. We are also disappointed with what happened on Tuesday because the negotiations have not yet collapsed, so why strike or riot?” Mr Mando said.

Zambia Daily Mail


Times of Zambia reports…

Chambishi fires 500

 ALL the 500 striking workers at Chambishi Copper Smelter (CCS) were yesterday fired while seven National Union of Miners and Allied Workers (NUMAW) branch officials were arrested and detained on Tuesday evening.

The workers were served with letters of summary dismissal by management in the morning.

The move by management was as a result of the riotous behaviour by the workers at the company premises on Tuesday morning.

Police said those arrested were detained at Kitwe Central Police Station to help with investigations.

The workers at the Chinese-owned company had been on strike since Monday, demanding improved conditions of service.

The situation worsened on Tuesday when the workers decided to become violent and damaged property worth millions of Kwacha.

Both CCS company secretary, Sun Chuanqi and NUMAW national secretary, Albert Mando, confirmed that all the 500 workers who took part in the work stoppage had been served with letters of summary dismissal and had been given three days in which to exculpate themselves.

But Mr Mando said it was unfortunate that management had decided to serve the workers with letters of summary dismissal, saying there was no reason to continue with negotiations when its members had been served with letters of dismissal.

He, however, said his union would work hard to ensure that the seven branch union officials, who had been arrested, were released so that negotiations could continue.

“Yes, I have been told that the management at the company has also served the workers with letters of summary dismissal, but it is unfortunate management has resolved to take this stance.

“This decision by management will affect our negotiations because how do we negotiate when our members have been given letters of summary dismissal,” Mr Mando said.

And speaking in an interview at CCS, Mr Chuanqi said the management at the company had decided to serve its workers with letters of summary dismissal as a way of disciplining them for their riotous behaviour, but that they were free to exculpate themselves.

He said management was eager to listen to the concerns of the workers, but was saddened that the workers quickly resolved to become riotous and damaged property at the company.

He said the Chinese investment in Zambia was there to benefit both Zambians and Chinese and there was no reason for Zambian workers to become violent and damage property.

“As management, we do not take pleasure in dismissing our employees, but we want them to know that violence does not pay and that they have to do things according to the law. Problems arise where there are people, but things must be done correctly,” Mr Chuanqi said.

And Mr Mando confirmed the detention of the seven union branch officials and that he was trying to secure their release.

Mr Mando, who was still at the Kitwe Central Police Station by Press time, said those arrested were branch chairman, Oswell Chibale Malume, vice-branch chairman, Christopher Yumba, branch secretary, Steven Kabwe, branch vice-secretary, Christopher Nkandu, treasurer, Kafwaya Ndombwani, vice-treasurer, Chanda Mhango and a shop steward, Kachinga Silungwe.

Mr Mando said the seven were picked up on Tuesday evening and had not been formally charged although they were still being interrogated.

“Yes I can confirm that seven of NUMAW branch officials at Chambishi Copper Smelter have been arrested and detained at Kitwe central police station. They were picked up around 18:00 hours on Tuesday.

“I am actually at the police station, but I have not talked to them because they are still being interrogated and have not been formally charged. As a union, we are trying to secure their release,” Mr Mando said.

The Times team which went to CCS found the place deserted with only armed police dotted all over to keep vigil.

End of report.

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By Shapi Shacinda

LUSAKA, March 3 (Reuters) – Foreign owners of Zambian copper mines have proposed a 12.5 percent windfall profit tax, rejecting the government’s proposed 25 percent rate, a senior industry official said on Monday.

“I am not able to say whether we will make headway or not,” Frederick Bantubonse, head of the Chamber of Mines of Zambia (CMZ), told Reuters after the group offered counter-proposals on the mining taxes.

Evans Chibiliti, Secretary to the Treasury, was quoted by state media on Monday as saying the government would press ahead with new taxes despite the new suggestions from mining firms.

In January, the government proposed a windfall profit tax at a minimum of 25 percent and an increase in mineral royalty to 3.0 percent from 0.6 percent.

It also plans, from April 1, to introduce a variable profit tax at 15 percent on taxable income above 8 percent and to raise corporate tax to 30 percent from 25 percent.

Foreign firms could be prohibited from mining copper if they did not the taxes

The CMZ has also proposed a variable profit tax be raised to taxable income above 16 percent from the government-suggested minimum of eight percent.

“If (the government) desires to impose variable profit tax in preference to windfall tax … it should be considered as 16 percent in place of the proposed 8 percent in the (law),” the CMZ said in a proposal submitted to parliament.

CMZ said that instead of introducing a flat rate of 3 percent mineral royalty, the government should introduce the tax at 1 percent, graduating to 3 percent with price increases. The corporate tax rate should remain at current 25 percent.

The group said the money raised through higher taxes should be used to help generate more power, following the costly energy outages suffered in January, and waning capacity.

Mining companies say the government plans would result in excessive taxes and also argue that they were not consulted on the proposals.

(Reporting by Shapi Shacinda; editing by Chris Johnson)

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By Shapi Shacinda

LUSAKA (Reuters) – Zambia plans to raise electricity tariffs for its copper and cobalt mines after the southern Africa nation increased domestic power charges by 27 percent, officials said on Thursday.

Hanson Sindowe, chairman of the Copperbelt Energy Company (CEC), the sole distributor of power to Zambia’s vast copper and cobalt mines, said tariff rise negotiations were almost concluded with various foreign mining firms.

“We are currently negotiating with the mines and we are almost there,” Sindowe told Reuters.

He declined to say how much the tariffs would rise.

Officials say that plans to raise power tariffs were aimed at making state power utility Zesco economically viable and to ensure Zambia reaped greater benefits from profits foreign mining firms were reaping from higher global metals prices.

CEC purchases power from Zesco and distributes it to the mines.

Industry analysts say the copper and cobalt mines pay lower rates compared with most industries after they negotiated lower tariffs at the time Zambia was privatizing its copper mines in a bid to keep them running, after decades of under capitalisation caused some mines to be on the brink of closure.

Last week, the International Monetary Fund (IMF) Board proposed that Zambia should raise electricity tariffs in its end of year review of the country’s economic performance.

The IMF said raising tariffs would enhance the development of the energy sector.

Zambia agreed with the IMF and the World Bank in the early 2000s to reduce state participation in the state-run power utility Zesco in order for the country to continue to receive financing from multilateral institutions.

“They (IMF board) emphasized the importance of raising electricity tariffs to levels consistent with full cost recovery, and of strengthening the corporate governance and efficiency of the public utility,” the IMF said in a statement.

The state Energy Regulation Board (ERB) said separately that it had allowed Zesco to raise power tariffs for domestic users by 26.8 percent and by 1.3 percent for other industrial users, state media reported on Thursday.

“The ERB would approve a further increment in residential tariffs by 16.6 percent and 11.9 in 2009 and 2010,” respectively, the state Zambia Daily Mail quoted ERB chairman Sikota Wina as saying.

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NEW YORK, Nov. 15 /PRNewswire-FirstCall/ —

flag.gifAllied Energy Corporation (OTC: AGYP) is pleased to announce that Company representatives will be visiting Zambia next week to inspect the producing tin, tantalite and mica concessions (mining title and leases) in the area of Choma, Zambia collectively, the “Starfield Mine”).

As previously announced, the Company has entered into a Memorandum of Understanding with Starfield Minerals Ltd. (”Starfield”), for the purpose of acquiring Starfield itself or its sole asset, being the Starfield Mine.

Located in continental Southern Africa, the Republic of Zambia is one of the world’s principal tin producers and is extensively resource rich in other metals and minerals (e.g. copper, tungsten and nickel).

Allied Energy Corporation will focus on the profitable development of the Starfield Mine; however, the Company intends to aggressively pursue additional acquisitions complimentary to this initial transaction.

Production at the Starfield Mine is currently conducted by artisanal
workers using hand-labour and it is anticipated that extensive production efficiencies and volume improvement can quickly be achieved using mechanization.

When mining plant and equipment is installed, production is expected to increase, over time as implemented, from current nominal levels to potentially 400 tonnes per month of tin concentrate.

Due to current and forecast demand for tin, driven principally by demand in China and India, it is forecast that the price of tin will be sustained or increased from current levels. Currently, tin trades for $16,500 per tonne ($7.48 per pound) on the London Metal Exchange.

Tin (Sn) is classified in the group of base metals, which consist of
non- precious metals of great importance and utilization in the
infrastructure of society and industrialization.

Due to its low melting point, Tin easily binds to iron (steel), lead, copper, and zinc, which makes it an important coating material for prevention the rusting or oxidation.

The main industries that utilize tin are: food preservation canned foods), telecommunications, electric circuits, semiconductors, and architectural engineering.

For the year 2006, the global tin market was estimated at 360,000 tonnes, which translated into a total global USD value of approximately $5.5 Billion. This number is expected to grow significantly due to the rapid modernization and GDP growth of the large and emerging Asian economies (i.e. China, India, Indonesia).

As the Choma site is expected to be developed further, it is anticipated that most if not all of the current artisanal miners will be employed in this venture.

Additionally, adjacent sites have been identified for potential acquisition as part of expanded exploration and development activities.

Production will be delivered to market via South Africa or Tanzania.
Zambian, South African and American based entities have expressed a
willingness to purchase the product.

About Allied Energy Corporation:

Allied Energy Corporation is a publicly traded Company actively seeking a potential acquisition target within the natural resources sector. On October 31, 2007 the Company entered into a Memorandum of Understanding to acquire Starfield Minerals Ltd. or its assets. Starfield Minerals Ltd. owns a Zambia, Africa based tin and tantalite deposit (the “Starfield Mine”) in the vicinity of Choma, Republic of Zambia.

Contact: Antonio Treminio, Investor Relations, Allied Energy
Corporation, Tel: 212-315-9705, e-mail: